The following set of items describes activities completed by a company in purchasing and paying for merchandise and in collecting cash for merchandise sales. For each activity, identify whether or not the activity adheres to or violates sound internal control procedures. (Choices may be used more than once.)
-The receiving department compares the quantity of merchandise received with the quantity ordered.
A)Adheres to sound internal controls
B)Violates sound internal controls
C)Neither strengthens nor violates internal control

Question

Quizplus · Accepted Answer

Comparing the quantity of merchandise received with the quantity ordered by the receiving department is a fundamental internal control procedure. It ensures that the company receives exactly what it ordered, preventing errors or fraud in the delivery process.

The Following Set of Items Describes Activities Completed by a Company